Belships

Business and Financial Review • Oct 14, 2021

BELSHIPS ASA: Fleet expansion and period charter contract

BELSHIPS ASA: Fleet expansion and period charter contract

Belships has entered into an agreement for the acquisition of a 64 000 dwt

Ultramax newbuilding resale currently under construction at a Japanese shipyard.

Delivery is expected to be January 2023. The intention is to finance the vessel

on similar terms as previously acquired newbuilding resales, which implies a

fixed-rate bareboat charter of around 10 years with purchase options. The

estimated cash breakeven upon delivery is expected to be about USD 11 500 per

day including operational expenses. The agreement is conditional upon certain

steps to be completed by the parties involved. Conclusion is expected within Q4

Belships is taking over an existing contract for a vessel already under

construction whilst the orderbook and supply side approaches the lowest levels

seen in 30 years. Belships' fleet continues to increase and improve with only

modest cash investments. Japanese-design Ultramax bulk carriers entering the

fleet represent the highest quality and lowest fuel consumption available in the

market today.

Belships has entered into agreement for a period time charter contract for one

of our modern Ultramaxes of Japanese design for a period of about 22-24 months

at a gross rate of USD 26 250 per day. The contract is expected to commence by

the end of October 2021.

Belships has a uniform and modern fleet of bulk carriers well positioned to

capitalise on a strong dry bulk market. Following completion of all announced

transactions, the Belships fleet will count 30 Supramax/Ultramax bulk carriers,

with an average age of 4 years and average cash breakeven of about USD 10 500.

Our strategy is to develop Belships as an owner and operator of geared bulk

carriers, through quality of operations and pursue accretive growth

opportunities for the purpose of maximising shareholder value. Based on current

market expectations, we expect to generate significant free cash flow and aim to

pay quarterly dividends as announced with our dividend policy.

For further information, please contact Lars Christian Skarsgård, Belships CEO,

phone +47 977 68 061 or e-mail LCS@belships.no

This stock exchange announcement was published by Edwin Johansen,

Accounting Manager in Belships ASA on 14 October 2021 at 07:00 CET.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act